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Reading: Rapido slapped with Rs 10,00,000 penalty, ordered to problem refunds to some customers
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StockWaves > Business > Rapido slapped with Rs 10,00,000 penalty, ordered to problem refunds to some customers
Business

Rapido slapped with Rs 10,00,000 penalty, ordered to problem refunds to some customers

StockWaves By StockWaves Last updated: August 21, 2025 3 Min Read
Rapido slapped with Rs 10,00,000 penalty, ordered to problem refunds to some customers
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What is the matter? Why has Rapido been fined?Rapido to problem Rs 50 refund to each impacted consumerRapido ordered to submit compliance report in 15 days

On-line bike taxi and auto-rickshaw hailing platform Rapido has been slapped with a penalty and ordered to problem refunds to a few of its prospects. The Central Client Safety Authority (CCPA) — the nation’s client affairs regulator — has imposed a penalty of Rs 10 lakh on Rapido over allegedly deceptive commercials. 

In accordance with CCPA — which features beneath the Ministry of Client Affairs, Meals and Public Distribution, the stated advertisements ran in additional than 120 cities for 548 days. The advertisements had been in a number of languages, in line with the regulator. 

These advertisements allegedly promised “assured service” and “cashback advantages”, in line with the authority. 

The motion comes at a time when the nation’s digital platforms market is increasing quickly, pushed by elements reminiscent of robust web penetration, widespread smartphone adoption, and booming e-commerce.

ALSO READ: Centre permits Ola, Uber, Rapido to cost double fares throughout peak hour

What is the matter? Why has Rapido been fined?

In accordance with CCPA, Rapido exaggerated the reliability of its companies and hid its key phrases and situations, therefore deceptive shoppers. 

The regulator had acquired complaints flagging the platform’s claims, like “assured auto” and “auto in 5 minutes or Rs 50”.

Between June 2024 and July 2025, 1,224 complaints had been filed in opposition to Rapido on the Nationwide Client Helpline (NCH), greater than double than 575 complaints registered between April 2023 and Could 2024. 

These complaints included points reminiscent of overcharging, refund delays and unfulfilled cashback guarantees.

“It’s evident from the above figures that the variety of client complaints in opposition to the alternative celebration has elevated considerably over the following interval. Moreover, 50 per cent of those grievances/complaints remained unaddressed by the alternative celebration,” famous the CCPA order, dated August 20. 

Rapido to problem Rs 50 refund to each impacted consumer

Directing the platform to withdraw all deceptive advertisements instantly, CCPA has ordered Rapido to refund an quantity of Rs 50 to each impacted consumer. 

Rapido ordered to submit compliance report in 15 days

CCPA has additionally ordered Rapido to submit a compliance report back to it throughout the subsequent 15 days. 

CCPA’s most important operate is to guard, promote and implement client rights.

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